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Five Advantages of Group Health Insurance You Might Not Know

The advantages of employer provided healthcare benefits are obvious to the employees. But there are big advantages to the employer as well. Learn more...
Monday, 27 January 2020
The Five Advantages of Group Health Insurance The Five Advantages of Group Health Insurance

If you’re an employer in Arizona that doesn’t offer health benefits, you might not be aware of the five advantages of group health insurance. This information could help you to make an informed decision about whether group health insurance is right for your business.

Business owners should take the time to find out more about the advantages of group health insurance. After all, offering health coverage is one effective way to attract and retain the right talent to your company. 

In this post, we’re going to reveal the five key advantages of group health insurance for small businesses in Arizona.

1. Great Health Insurances Motivates Workers

Perhaps the biggest advantage that a group insurance policy offers employers is that it motivates employees. Today, medical bills are higher than ever before. Families all over the country are finding it tough to pay their health-care costs themselves. 

It’s no wonder, then, that employer-provided health coverage is a major benefit. A small company that supports employees in paying their medical expenses encourages employees to work harder. 

When employers pay into a plan that insures workers against high hospitalization costs, this is very motivating. Workers feel that their employers appreciate them and care for them, and happy workers always work harder. As a result, your business will be more productive and more profitable.

2. Retaining and Attracting the Best Employees is a Key  Advantage of Group Health Insurance 

Many business sectors are finding it increasingly hard to attract the right kind of talent and skilled staff to their companies. If your business is in one of these industries, finding a way to attract talented workers is essential. Not only that but finding effective ways to retain existing employees is also important. Group health insurance can help with this goal. 

More small businesses in Arizona are becoming increasingly employee-centric. Employer-provided health insurance policies are an attractive benefit that potential employees are seeking. Business owners are finding it easier to attract skilled applicants to posts when there is a group health policy on offer. 

It’s also easier to keep the skilled workers that you already have. This is especially the case when the group policy covers the employee’s family members, too. This makes employees feel a greater attachment to the company.

Related: Do Small Businesses in Arizona Have to Offer Dependent Health Insurance Coverage?

3. An Affordable Choice

When employers buy a group health insurance policy, the costs can be significantly lower than individual insurance. This is because group health insurance is, essentially, buying in bulk. Insurance providers offer impressive discounts for group plans. 

The lower cost of group health insurance is great news for Arizona employers that are trying to cut costs while running their businesses. It’s possible to reap all the benefits of offering health coverage to employees at an affordable price.

4. There Aren’t Any Enrollment Restrictions

Another advantage of employer-provided group health insurance policy is that there are no enrollment restrictions. This makes it simple for anyone you hire to join your group health insurance plan. 

Regardless of what time of year it is, there are no difficulties in signing up. Other types of health insurance - i.e. Obamacare - have specific times of the year when they permit employees to enroll. This can be problematic for employees who join the company outside of those times. 

With a group policy, applications are possible regardless of the season. This gives employers and employees alike complete confidence when making an application.

5. Employer Tax Benefits

Another important advantage of group health insurance policies is that they offer tax benefits for employers. When business owners pay for healthcare benefits for their workers, they can get a tax cut. When they offer insurance coverage to their employees, businesses can receive a small business health-care tax credit. 

Qualifying businesses can receive credit back from their taxes. The tax savings can help compensate the employer for the premiums they pay for their workers’ coverage. Therefore, providing employee healthcare benefits reduces their tax liability and makes running their businesses more affordable. Since saving money is vital for all types of businesses today, this is no small advantage.

Take Advantage of Group Health Insurance for Your Business

If you’re running a small business in Arizona, you may not be legally obligated to offer your employees health coverage. However, you may want to consider purchasing healthcare benefits for the reasons suggested above. 

When your business has healthy workers, it can stay successful and productive. A group health insurance policy is, therefore, a great choice for small business owners of all kinds. 

The advantages of group health insurance are clear for employers and employees alike. Motivated, happy, and healthy workers profit any business, while the tax and employee retention benefits are ideal for employers. Consider taking out a group health insurance policy for your employees, and you could reap those benefits.

Contact us to schedule a free consultation with an Arizona health insurance broker to get a quote for group health insurance for your business.

More Reading on Group Health Insurance

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